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Debt Servicing To Gulp 123% Of 2023 Revenue - Politics - Nairaland

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Debt Servicing To Gulp 123% Of 2023 Revenue by Racoon(m): 7:08am On Dec 12, 2022
The World Bank has projected that debt servicing will gulp 123.4 per cent of the Federal Government’s revenue in 2023.

This was according to a presentation made by the new World Bank Lead Economist for Nigeria, Alex Sienaert, in November 2022, which was obtained by our correspondent.


The document was entitled, ‘Nigeria Public Finance Review: Fiscal Adjustment for Better and Sustainable Development Results.’

The document projected that debt servicing would gulp 100.2 per cent of Federal Government revenue by the end of 2022.


This was a decline from the earlier projection in its October Africa’s Pulse report, which is a biannual analysis of the near-term macroeconomic outlook for the region, published during the World Bank/IMF Spring and Annual Meetings in April and October.

In the Africa’s Pulse report, the Washington-based bank had said that Nigeria’s debt service to revenue ratio could stand at 102.3 per cent by the end of 2022. It had described the public debt in Nigeria as concerning due to the rising debt service-to-revenue ratio.

However, the situation would be dire in 2023 as debt surviving would exceed 118 per cent of revenue reported in the first four months of 2022.

In his presentation document, the World Bank lead economist for Nigeria noted that borrowing more money was not the solution for Nigeria.

The document read, “Borrowing more is not the solution: debt costs are rising rapidly, squeezing non-interest spending.

“Debt servicing has surged over the past decade and is expected to continue increasing over the medium-term, crowding out productive spending.”

The PUNCH recently reported that Nigeria’s public debt rose to N44.06tn in the third quarter of 2022, with the country struggling with a repayment burden.

According to a press statement published on the website of the Debt Management Office, the total public debt stock rose from N42.84tn recorded in the second quarter to N44.06tn in the third quarter of 2022.

This showed that there was a 2.85 per cent increase quarter-on-quarter, with Nigeria acquiring N1.22tn debt within three months.

The DMO said that the increase in public debt was due to new borrowings by the Federal Government to part-finance the deficit in the 2022 Appropriation Act, alongside new borrowings by sub-nationals.

It also noted that the total public debt stock consisted of domestic debt of N26.92tn and external debt of N17.15tn.

The World Bank recently said that Nigeria’s debt, which might be considered sustainable for now, was vulnerable and costly.

According to the Washington-based global financial institution, the country’s debt was also at risk of becoming unsustainable in the event of macro-fiscal shocks.

The bank had said, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.

“While currently the debt stock of 27 per cent of the Gross Domestic Product is considered sustainable, any macro-fiscal shock can push debt to unsustainable levels.

“However, the debt to the GDP in Nigeria is rising quickly, and the total stock of debt in absolute value has almost doubled between 2016 and 2020, and without a policy change is expected to reach 40 per cent of the GDP by 2025.”

The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupted public investments and critical service delivery spending.

Speaking at the launch of the World Bank’s Nigeria Development Update titled, ‘The Urgency for Business Unusual,’ the Minister of Finance, Zainab Ahmed, had admitted that Nigeria was struggling to service its debt.

She said, “Already, we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate, so it is a very difficult situation.”


A Professor of Development Macroeconomics at the University of Lagos, Prof Olufemi Saibu, criticised the government for over-borrowing.

He said, “I think we are over-borrowing. We continue to rely on international benchmarks which make us lazy in terms of revenue generation.”
https://punchng.com/debt-servicing-to-gulp-123-of-2023-revenue/?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1670808013

2 Likes 1 Share

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Racoon(m): 7:09am On Dec 12, 2022
Hope the govt and its hoardes of high graded mummified zombies are well pleased now? See how the failed clueless, senseless, inept and corrupt government of super-looters chronic borrowers have bequeathed to a once 3rd fastest growing economy in Africa and the world?

They were reminded that debt servicing is not the same as debt payment, fools claimed they are wise bit instead are stupidly mortgaging this already battered nation into chronic financial indebtedness. What a bunch of dimwits.

84 Likes 8 Shares

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Racoon(m): 7:10am On Dec 12, 2022
In his presentation document, the World Bank lead economist for Nigeria noted that borrowing more money was not the solution for Nigeria.
Meanwhile hear the people we have in government;

"Nigeria have not borrowed enough" - Finance Minister.

"Why NASS continues to approve more borrowing despite rising debts" - Lawan
https://www.google.com/amp/s/www.vanguardngr.com/2021/06/why-nass-continues-to-approve-more-borrowing-despite-rising-debts-lawan/amp/

"We will borrow more to fund critical infrastructure" - says FG
https://www.google.com/amp/s/www.vanguardngr.com/2021/02/we-will-borrow-more-to-fund-critical-infrastructure-says-fg/amp/

22 Likes 3 Shares

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by handsomeyinka(m): 7:12am On Dec 12, 2022
Tinubu is coming to fix it.

2 Likes 1 Share

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by noskcid(m): 7:12am On Dec 12, 2022
Where these people dey when dem Dey borrow before?
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Crystil: 7:13am On Dec 12, 2022
Nigeria my country and

2 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by chiefolododo(m): 7:13am On Dec 12, 2022
R
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Enemyofpeace: 7:13am On Dec 12, 2022
I pity the next administration that would take over from this satanic government





..I was shaving my private part using my phone as a touch suddenly I heard notifications only to see that I was live on tiktok

22 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Favourchris(f): 7:13am On Dec 12, 2022
ApC rat will still defend

23 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by FrancescoFarino(f): 7:13am On Dec 12, 2022
Hope they won't have to sell us the citizens off ,to raise money for the debt they took to enrich themselves.

8 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by ObiLamba: 7:14am On Dec 12, 2022
angry
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by ezechi242: 7:14am On Dec 12, 2022
The innocent citizens keep paying for sins they never committed....tufiakwa

8 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by BabaCommander: 7:15am On Dec 12, 2022
Nigeria is sick

2 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by marlow1962(m): 7:15am On Dec 12, 2022
Wertin dem use d debt do?
Una nva srr anytin, continue recycling fools.

7 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Racoon(m): 7:15am On Dec 12, 2022
Then someone is telling us bullshit about continuity? Are we really thinking in this country @ all?

15 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by LibertyRep: 7:16am On Dec 12, 2022
123%
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Boyooosa(m): 7:16am On Dec 12, 2022
Wow
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by symbianDON(m): 7:17am On Dec 12, 2022
ApC!!!!! Top to bottom!

11 Likes 1 Share

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by owobokiri(m): 7:17am On Dec 12, 2022
The more reason why Nigerians should be very careful in terms of who they will vote for as the president next time. Always always be careful of candidates that constantly prioritize their loyalties to the western world more than Nigeria

All these people going to meet westerners in Washington and London before every elections are the ones responsible for this. They have traded off the country for political support to be president

It's the main policy of the imperial Western world to dubiously budden developing states with excruciating loans in other to turn the people into slaves in their own land.

As it stands today, Nigerians are working for the Western world through the interest payments on the dubious loans obtained from different western financial institutions by Evil government imposed on us by Obama and Cameron!

Remember their support for Buhari? Buhari has payed back through the loans but we are all bleeped now!

5 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by MrHighSea: 7:17am On Dec 12, 2022
Even America is owing.

Debt is not bad as it was used to lift Nigerians out of poverty, procure weapons to subdue insurgents and improve agro production.

One day, China will zip-line into Asovilla in ninja style and arrest whoever is the president, compel us to speak mandarin and pay huge tax in yuan.

It might be what we need to vote without tribe, religion and party.

9 Likes 1 Share

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by WibusJaga: 7:17am On Dec 12, 2022
.

Nigeria is Sick
&some Sick people
expect a Sick person
to come rescue a Sick Country

No be juju be that. cheesy

10 Likes 1 Share

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Offpoint1: 7:17am On Dec 12, 2022
H
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by kingsways: 7:19am On Dec 12, 2022
Wao
Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Greystone: 7:24am On Dec 12, 2022
And the only remedy for this will be to borrow even more money and plunge the country further into debt.
Clueless wicked selfish people

2 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by MrPresident1: 7:25am On Dec 12, 2022
Let them borrow money to service the debts now, as long as there are still donors to give us money

Let China borrow us money

1 Like

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by MrPresident1: 7:25am On Dec 12, 2022
When they borrow us the money, we can use it to buy food and eat

1 Like

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by PreacherMan007: 7:25am On Dec 12, 2022
Buhari and his APC cankerworm are a curse to Nigeria and the masses. Peter Obi is a blessing. Vote someone who carries a blessed gene so that the country can be the headquarters of blessings among her peers in Africa. Vote Obi/Datti. Vote LP.

7 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by omowolewa: 7:25am On Dec 12, 2022
123.4% means we are going to borrow to service the debts.

We failed to act, we are acting to fail.


We begged against the debt used on infrastructure that cannot repay itself but our NASS won't listen.

Now we are borrowing to pay borrowings

11 Likes

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Kobicove(m): 7:26am On Dec 12, 2022
If this is true then it means we have a very serious problem!

1 Like

Re: Debt Servicing To Gulp 123% Of 2023 Revenue by Clasmanj(m): 7:27am On Dec 12, 2022
No be small

1 Like 1 Share

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